Fallout from EB-5 Settlement

BURKE— Nearly two years after Ariel Quiros was found to have been misusing EB-5 funds at Burke Mountain, the Securities and Exchange Commission (SEC) has settled and says that Quiros will pay up.

The judgement came on Friday and says that Quiros agreed to pay over $81 million as part of the settlement.

"It's another step towards closure for the community," said Kevin Mack, Director of Resort Services at Burke Mountain.

"The SEC's settlement with Quiros is very good for the victims of the fraud because under the settlement all Jay Peak and Burke Hotel properties will be transferred to me for the benefit of the victims," said Federal Receiver Michael Goldberg.

Vermont Governor Phil Scott and Attorney General T.J. Donovan in a joint statement said, " Receiving legal title of the resort properties enables Mr. Goldberg to move forward with a sale to a permanent owner."

"Well I think the community deserves a time to look to the future and again this is another step towards closure," said Mack. "This has been a couple of years in the making. We're just happy that Mr. Goldberg and his team are moving forward because we know at the end of this, there'll be a new chapter for Burke."

"More must be done to seek justice for Vermonters and the communities that have been harmed," said Governor Scott and Attorney General Donovan. "The State's separate civil enforcement case continues against Ariel Quiros and Bill Stenger for alleged violations of Vermont law and we remain committed to pursing it, seeking maximum financial justice for Vermonters."

Goldberg expects the sale process of the resorts will begin in early summer. Currently Leisure Resorts manages the Jay Peak and Burke Hotel Properties and will through the eventual sale.